PURCHASE, N.Y.—A new study shows consumer spending is up, and Americans are opening their wallets for travel and larger-ticket items that build memories.
That is a key finding from the latest MasterCard SpendingPulse report, which shows that U.S. consumer spending grew 4.3% in May compared to last year, excluding auto and gas.
The strong sales in May, particularly compared to a similarly robust May 2014, represent a positive gain leading into the busy summer travel season, said MasterCard Advisors.
“American spending has undergone a fundamental shift,” said Sarah Quinlan, SVP and group head, market insights, for MasterCard Advisors. “American consumers are traveling, they are eating out, they are spending time with friends and family. They are absolutely spending money, but the focus is now about building experiences and creating lasting memories.”
According to SpendingPulse, the three biggest categories for growth in May were hardware, restaurants and furniture and furnishings. This uptick in durable goods spending demonstrates consumers’ confidence in committing to larger-ticket purchases that will contribute to family memories at home, MasterCard assessed.
In a continuation of the trend toward experience-focused spending, lodging and airlines also saw positive growth in May.
Total U.S. retail sales, excluding auto, grew 1.2% in May, reflecting lower gas prices, which are down 24.9% compared to last year.